Rethinking Relocation

Changing market demands and new housing options are shifting the playing field for employee mobility

By Harvey Chipkin

2018-02-14T17:38:15+00:00

Disruption has come to the relocation landscape – from forces both inside and outside the lodging market. Most immediately, the tax reform bill, effective Jan. 1, 2019, that just passed through Congress eliminates the deductibility of moving expenses, throwing a monkey wrench into corporate programs.

Add to the mix political issues like the complications around visas and immigration, plus industry shifts like the explosion of alternative lodging and demands by employees for a more positive transfer experience, and it adds up to a good time to rethink relocation.

The tax bill will most likely impact new hires and lower seniority transferees who are more likely to receive a lump sum in lieu of managed benefits, according to Paula Holloway, director of relocation accounts for BridgeStreet Global Hospitality. Changes to the tax law may result in more companies managing moves directly with suppliers or reimbursing employees.